New U.S. Sanctions Target Russian Oil Industry and Shadow Fleet

The Biden administration's latest measures aim to cut Kremlin revenues and disrupt oil supply chains, with potential global market impacts.

The U.S. has imposed new sanctions on Russia's oil sector, targeting major producers, over 180 tankers, and shadow fleet operators evading earlier restrictions.
These sanctions are expected to significantly disrupt Russian oil supply chains, potentially tightening global oil markets, though the IEA forecasts an overall surplus in 2025.
The measures could drain billions from Russia's economy, which heavily relies on oil revenue to fund its war in Ukraine and rising defense spending.
Russia's shadow fleet, used to bypass price caps and sanctions, faces increased pressure as sanctioned tankers are sidelined by key buyers like India and China.
Oil prices have risen on concerns about reduced Russian supply, but non-OPEC+ production growth and existing reserves may mitigate long-term price spikes.